Mylan to Settle Pay-for-Delay Complaint Over Cephalon’s Provigil for $96.5 M

Mylan has reached a settlement to pay $ 96.5 million to resolve a class action lawsuit alleging the company accepted payment from the branded drugmaker Cephalon to delay the launch of generic version of the narcolepsy drug Provigil.

The proposed settlement would end a dispute, which started more than a decade ago and centered on pay-for-delay agreements Cephalon entered with the generics maker Mylan. The original complaint — filed by direct purchasers of Provigil, including King Drug Company of Florence — contended that Mylan conspired to postpone the market launch of Provigil generics, resulting in higher prices for the drug.

Under the terms of the agreement, which still requires approval from District Judge Mitchell Goldberg for the Eastern District of Pennsylvania, Mylan will dole out a share of the settlement to each of the drug purchasers in the lawsuit.